Big Wanaka property occupied by holiday park

11:09 AM Friday October 21, 2016Colin Taylor

An aerial view of the Wanaka Top 10 Holiday park for lease.

A big property in Wanaka, leased to a well-known holiday park brand, is on the market for the first time since 1989, promising the buyer a passive investment with the potential to develop the land in the long term.

“This is a compelling opportunity for an investor to secure a strategic land holding in a fast-growing market, with a long term income stream,” says Ben Cameron of Savills Real Estate who is marketing the property occupied by the Wanaka Top 10 Holiday Park for sale by deadline private treaty closing on November 10.

The holiday park has a long lease on the freehold 4ha land parcel and buildings at 217 Wanaka-Mt Aspiring Rd

“It is tenanted to the Top 10 holiday park until 2039 and generates solid and growing income,” Cameron says. “We’re expecting a lot of interest, based on the strong tenant covenant provided by Top 10 and the growth in Wanaka’s property market. The market in Wanaka is under heavy demand at the moment across all sectors, driven by increasing tourism and migration numbers.”

The operators of the holiday park purchased the business at the start of this year and have the rights to operate through to 2039. The lease generates net annual passing income of $225,000, with ratcheted rental increases built in, providing good income growth.

“The Top 10 brand is well-known nationally and has a proven track record of successful operations in this location,” says Cameron.

Facing north on a terraced hillside, the property has an attractive outlook including lake and mountain views. Several buildings on site have been constructed in stages since the mid 1970s, including a manager’s residence and staff quarters, accommodation units, amenities, recreation areas, a swimming pool, BBQ area and playgrounds. The manager’s residence building also has an office and shop.

Accommodation for guests includes a mix of motel units, tourist flats and cabins, along with 77 powered camp sites and 45 non-powered sites.

Accommodation units on the property have attractive lake and mountain views.

The property is located 2.8km from central Wanaka, opposite the well-known Rippon winery, says Cameron. “The holiday park is in a great spot on the western fringe of Wanaka, surrounded by lifestyle properties. It is positioned down a driveway from the main road out to Glendhu Bay, Treble Cone Ski Area and Mt Aspiring National Park.”

Cameron says the land, which is currently zoned Rural Lifestyle, is subject to a proposed zone change to Large Lot Residential – a higher-density zone which offers the potential to subdivide the site as a long-term option.

“This site is located right on the edge of Wanaka on the way to Glendhu Bay – on one of the town’s main arterial routes. This makes it a prime candidate for development into residential sections in the future, if and when the zone change comes into force.

“This will be considered an added bonus for investors who are looking for a passive, income-generating holding in a property market which is experiencing very high demand, with a view to capitalising on Wanaka’s growth in the long term.”

Cameron believes the popularity of Wanaka as a holiday destination among affluent families based in Christchurch and Auckland will put the property on the radars of investors nationwide.

“This is a prime site with very strong investment fundamentals based on its location, tenant and future potential. We’re expecting inquiries from investors around the country, especially from Aucklanders who visit Wanaka for summer and winter holidays.”

Queenstown International Airport is an hour’s drive away from the property via the Crown Range Road. The holiday park is also a popular stop for people touring Central Otago and Fiordland via Wanaka, visiting destinations including Te Anau, Milford Sound, Queenstown and the vineyards of the Kawarau Gorge and Bannockburn, says Cameron.